MAG In The Community
We are proud of our Medicare Solutions Specialist, Shelli Jessie (on the left) being active in the community. Shelli interacted with fellow professionals at the Rutherford County Business Before Hours this past Thursday. We appreciate her professionalism within the community.
Will the next recovery be stronger or weaker than prior ones?
By Capital Group, Capital Ideas
If there is one, I believe there are two reasons a recovery will be stronger than prior cycles. First, there may not be a need for large-scale deleveraging like there was during the GFC. Because so many companies have been expecting economic weakness, businesses have taken action, delaying orders to work excesses out of the economy. So, while a recession is likely this year, I expect it will be somewhat shallow...
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Strong earnings from several mega-cap technology companies offset renewed regional banking jitters and weak economic data, leaving stocks higher for the week.
The Dow Jones Industrial Average gained 0.86%, while the Standard & Poor’s 500 added 0.87%. The Nasdaq Composite index rose 1.28% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 0.60%.1,2,3
Earnings Drive Rebound
It was a very busy week of earnings reports, but none more important than those from the Big Tech names. After two days of sharp losses on revived regional banking fears and otherwise lackluster earnings results, stocks rallied powerfully on a succession of positive earnings surprises from several mega-cap companies.
Also aiding the sentiment was last week’s first quarter Gross Domestic Product (GDP) report. Though the report showed muted economic growth that fell short of expectations, investors were encouraged by strong consumer spending.
In a sign that higher rates are slowing economic growth, first-quarter GDP slowed to a 1.1% annualized growth rate as healthy consumer spending helped offset a decline in business investment and a slowdown in nonresidential investment.
Economists had expected first-quarter GDP growth to come in at 2%. The business inventory investment slowdown reduced the headline GDP number by 2.26%.4
The initial estimate of GDP also reported some disappointing inflation news as the quarter-over-quarter Personal Consumption Expenditures Price Index, the Fed’s preferred inflation measure, rose 4.2%, which was higher than the 3.7% forecast.5
This Week: Key Economic Data
Monday: Institute for Supply Management (ISM) Manufacturing Index.
Tuesday: Factory Orders. Job Openings and Turnover Survey (JOLTS).
Wednesday: FOMC Announcement. Institute for Supply Management (ISM) Services Index.
Thursday: Jobless Claims.
Friday: Employment Situation.
Source: Econoday, April 28, 2023
This Week: Companies Reporting Earnings
Monday: Stryker Corporation (SYK), ON Semiconductor Corporation (ON).
Tuesday: Advanced Micro Devices, Inc. (AMD), Ford Motor Company (F), Pfizer, Inc. (PFE), Starbucks Corporation (SBUX), Marathon Petroleum (MPC).
Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), Albemarle Corporation (ALB), Barrick Gold Corporation (GOLD).
Thursday: Apple, Inc. (AAPL), Block, Inc. (SQ), Shopify, Inc. (SHOP), ConocoPhillips (COP), Booking Holdings, Inc. (BKNG), Regeneron Pharmaceuticals, Inc. (REGN),
Friday: Cigna Group (CI), EOG Resources, Inc. (EOG), Dominion Energy, Inc. (D),
Source: Zacks, April 28, 2023
"As you get older your willingness to tell more of the truth is awakened and you don't have to think about it or imagine it because now you know this to be true."
– Keith David
Tax Tips for Those in the Military
The Internal Revenue Service has certain special tax breaks and programs for members of the U.S. Armed Forces. Here are a few.
Earned Income Tax Credit
Signing Joint Returns
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov6
Stay Healthy During Flu Season
Conventional wisdom is that flu season comes during Fall and Winter, but the truth is that it can vary wildly from year to year and region to region. Fortunately, you may reduce your risk this coming flu season with a few simple steps.
While this information should not substitute for medical advice from your healthcare provider, implementing better habits, like frequent handwashing, wearing a face mask, and avoiding anyone ill, may help you and your loved ones stay healthy this flu season.
Tip adapted from Centers for Disease Control7
Two sailors stand on opposite sides of a boat. One looks west, and the other looks east – yet, they can both see each other clearly. How can this be?
Last week’s riddle: It can be told, made, cracked, and played, yet it is only spoken. What is it? Answer: A joke.
Oryx Antelope in the Kalahari Desert, S. Africa
Footnotes and Sources
2. The Wall Street Journal, April 28, 2023
3. The Wall Street Journal, April 28, 2023
4. CNBC, April 27, 2023
5. CNBC, April 27, 2023
6. IRS.gov, 2023
7. Centers for Disease Control, February 7, 2023
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